CMA Debasmita Jana*

Article discusses changes in 1. GST Provisions related to Threshold Limit for Registration in case of goods , Services and Both Goods & Services 2. Changes in GST Composition Scheme 3. Supply with or without consideration – treated as supply under GST, Changes in TCS Provisions and 4. Proposed New GST Return Formats.

Provisions Before 1st April 2019 Provisions After 1st April 2019
Threshold Limit for Registration in case of goods (allover India) except persons engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, UttrakhanadRs. 20 lakhs Threshold Limit for Registration in case of goods (allover India) except persons engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, Uttrakhanad Rs. 40 lakhs *
Threshold Limit for Registration in case of Services except persons engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, Uttrakhanad Rs. 20 lakhs Threshold Limit for Registration in case of Services except persons engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, UttrakhanadRs. 20 lakhs
Threshold Limit for Registration in case of Goods & Services engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, Uttrakhanad Rs. 10 lakhs Threshold Limit for Registration in case of Goods & Services engaged in making Supplies in the state of Arunacahal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikim, Telengana, Tripura, Uttrakhanad Rs. 10 lakhs
Composition Scheme- **

  • For Trader, Manufacturer – Rs. 1 Crore
  • For Restaurant Service Only – Rs. 1 Crore
  • Rate – For Trader, Manufacturer – 1% For Restaurant Service– 5%
Composition Scheme- **

  • For Trader, Manufacturer – Rs. 1.5 Crore
  • For Restaurant Service – Rs. 1.5 Crore
  • For Other Service Providers subject to threshold limit of turnover in the preceding Financial Year Rs. 50 lakhs – Rs. 1.5 Crore.
  • Rate – For Trader, Manufacturer – 1%

For Restaurant Service – 5%

For Other Service Providers whose

turnover in the preceding Financial Year Rs. 50 lakhs – 3% CGST & 3% SGST

Supply with or without consideration treated as supply under GST
  • Supply with consideration – treated as supply under GST
  • Supply without consideration except activity under schedule I – not treated as supply under GST
TCS Provisions-

Section 15(2) of CGST Act specifies that the value of supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, The UTGST Act, The GST Act if charged separately by the supplier.

TCS Provisions-

For the purpose of determination of value of supply under GST, Tax collected at source under the provisions of Income Tax Act, 1961 would not be includible as it an interim levy not having character of Tax

Example  

Example

Gold Ornaments – Rs. 5,00,000

Add – TCS @ 1% – Rs. 5,000

…………………………………………….

Rs. 5,05,000

Add – GST @ 3% – Rs. 15,150

……………………………………………..

Rs. 5,20,150

Gold Ornaments – Rs. 5,00,000

Add – TCS @ 1% – Rs. 5,000

…………………………………………….

Rs. 5,05,000

Add – GST @ 3% – Rs. 15,000

……………………………………………..

Rs. 5,15,000

* Threshold Limit for Registration in case of Goods- Rs. 40 lakhs is not applicable in following cases-

  • Persons required to take compulsory registration under section 24(Example – Online Sale , E-Commerce Operator)
  • Persons engaged in supply of Ice Cream and other edible ice, whether or not containing cocoa, Pan Masala, Tobacco and manufactured tobacco substitutes.

** Applicability of Composition Scheme-

  • Not engaged in making any supply which is not leviable to tax under the CGST Act.
  • Not engaged in making any inter state outward supply.
  • Neither a Casual Taxable Person nor a Non Resident Taxable Person
  • Not engaged in making any supply through an e-commerce operator who is required to collect tax at source under section 52
  • Shall not collect any tax from the recipient on supplies made by him nor shall be entitled to any credit of ITC
  • Shall issue Bill of Supply instead of Tax Invoice
  • The registered person under composition scheme shall mention the following words at the top of the bill of supply namely –“Taxable Person paying tax in terms of Notification No. 2/2019 –Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies[ Newly Notified]

Proposed New Return Formats

Proposed New Return Formats

  • If turnover up to Rs. 5 Crore in preceding Final Year , then Taxpayers can opt for submitting return quarterly using Form GST RET 1 or Form GST RET 2 or Form GST RET 3.
  • Quarterly Return submission using Form GST RET 1- ITC on Missing Invoices can be availed.
  • Quarterly Return submission using Form GST RET 2 & GST RET 3 – ITC on Missing Invoices cannot be availed.
  • Quarterly Return submission using Form GST RET 3- Outward Supply under B2C & B2B category and inward supplies attracting reverse charge are to be informed in this return.
  • Quarterly Return submission using Form GST RET 2- Outward Supply under B2C category and inward supplies attracting reverse charge are to be informed in this return.

*CMA Debasmita Jana is a qualified Cost Accountant (Membership No. – 43562) and is currently working in The Institute of Cost Accountants of India in its Tax Research Department.

Source- https://icmai.in/upload/Taxation/PROVISIONS_GST.pdf

More Under Goods and Services Tax

12 Comments

  1. ASHOK KUMAR KANUNGA says:

    composition scheme – Trader — paying 1% GST oN goods –also providing SERVICE getting resident rent — is taxable ? — if yes, at what rate, and commercial rent is taxable — if yes, at what rate?

  2. Rajiv Nigam says:

    Notification No. 2/2019-Central Tax (Rate) dt.7-3-19 says 6% (3%+3%) for Services or goods or both who are not covered under general composition scheme only allowed this rate first 50 lacs of turnover only thereafter no composition normal rate has to be apply. Further, for new comers Rs.20 lacs limit will not count for 50 lacs limit it means Rs.70 lacs is limit for new comers. Thereafter they have to apply normal rates.

  3. ASHOK KUMAR KANUNGA says:

    composition scheme – Trader — paying 1% GST oN goods –also providing SERVICE getting resident rent — is taxable ? — if yes, at what rate, and commercial rent is taxable — if yes, at what rate?

  4. Chandra Prakash Bhartia says:

    What is the provision for composition schemer for a club, if the total revenue from membership fee, sale from restaurant and room rents are below Rs. 1.5 Crores.
    Thanks

  5. Niranjan kumar agarwala says:

    We are a goods transport agency having turnover less than 5crore,wheatger we will file return quartely or monthly
    What are the new provision for us
    Please clear
    Thanking you

  6. jayanth jain says:

    sirji
    you have not given the meaning of sahej return and sugam return and is applicable for whom?? is it for both composition and regular dealer?? except from above points the explanations given are informative and helpful

  7. KAUSHIK JAGAD says:

    Is Composition Scheme applicable to Service Providers ?? Like Labour Suppliers, CAs, ICWAs, Contractors whose Turnover is below 1.5 Crores.

    1. Haresh says:

      Threshold Limit – INR 50 Lakhs for composition to service provider. The threshold limit of turnover in the preceding financial year would be INR 50 Lakh for supplier of services or mixed suppliers with a Tax Rate of 6% (3% CGST + 3% SGST). There will be liability of filing one Annual Return with paying taxes on quarterly basis with a prescribed declaration

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